Bitcoin might soon be part of South Carolina’s balance sheet.
Introduced by state Rep. Jordan Pace, the “Strategic Digital Assets Reserve Act,” proposes that the state treasurer be allowed to allocate up to 10% of certain public funds into digital assets—starting with Bitcoin.
The House Bill 4256, or HB4256, seeks to authorize the state treasurer to purchase and hold Bitcoin as a strategic reserve within key state-managed funds, including the General Fund and Budget Stabilization Reserve Fund.
With a maximum cap of one million BTC, the bill outlines a secure framework for custody, mandates regular public audits, and allows for voluntary BTC donations from residents.
While BTC is the only digital asset named in the bill, it explicitly states the reserve “may include, but not be limited to, Bitcoin,” allowing for the future inclusion of other cryptocurrencies through updated rules.
“Proud to file legislation that empowers SC to follow Donald Trump’s lead to create a state level strategic crypto reserve,” Pace said on X, formerly Twitter, Thursday. “This gives the Treasurer new tools to protect taxpayer dollars from inflation,” he added..
In early March, President Donald Trump signed an executive order to create a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile, both of which would be seeded with Bitcoin seized in government criminal cases.
But there have been differing opinions on whether the U.S. should spend money to acquire BTC or stock it in a “budget neutral” way.
Sen. Cynthia Lummis (R-WY) followed up by introducing the BITCOIN Act, which would require the U.S. government to acquire up to one million BTC—worth about $80 billion—over a five-year period.
South Carolina’s bill lays out a comprehensive legal structure that includes definitions of cold storage, qualified custodians, and exchange-traded products.
It mandates biennial reports, regular independent security audits, and that any digital asset holdings not exceed 3% of the state’s overall investment portfolio.
The bill would expire on September 1, 2035, unless renewed, giving the state a decade to experiment with incorporating Bitcoin into its public finance strategy.
States’ uneven embrace of Bitcoin
South Carolina’s proposed legislation is also part of a wider nationwide trend of states exploring the viability of adding Bitcoin to their reserves.
Arizona’s House recently advanced two major digital asset bills to a full vote, including one that allows the treasurer and retirement system to invest in Bitcoin and another to manage crypto seized from criminal cases.
Texas lawmakers passed Senate Bill 21 Bitcoin strategy reserve bill—SB21—earlier this month, which now awaits the Governor vote.
In Oklahoma, House Bill 1203 passed overwhelmingly and is awaiting Senate review. Kentucky recently passed legislation protecting Bitcoin self-custody and offering tax incentives for miners.
In Utah, Bitcoin legislation advanced, though references to a strategic reserve were dropped at the last minute.
Some states, however, are steering clear of the Bitcoin reserve trend—for now.
Wyoming lawmakers in Sen. Lummis’s home state recently saw their Bitcoin reserve proposal collapse in committee. Wyoming Gov. Mark Gordon has since distanced himself from the effort, stressing a more cautious approach.
“Bitcoin has been incredibly volatile,” he told Decrypt at the DC Blockchain Summit, adding, “It’s been a bit of a learning curve.”
Montana, North Dakota, South Dakota, and Pennsylvania have also abandoned similar bills.
Edited by Stacy Elliott.
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